20 July 2019
Dear Fellow Investor,
This week I will review our holdings in Thai Beverage, Genting Malaysia, HL Bank and Dialog.
On 13 May 2019 Thai Bev. dropped 12% to SGD 0.72 on their second quarter earning release. Earnings came in lower than expected so Thai Bev was sold down by panic stricken investors. Company insiders/funds knew more than the uninformed retailers and bought into the panic. Thai Bev has since recovered and last traded at 0.855. We continue to hold and collect our dividends.
On Friday we sold our Hong Leong Bank shares for a small profit Although it is a quality bank valuations have become expensive. Other banks in their space offer better value. It also broke a major chart support.
Dialog has recovered from a deep sell off due in part to a 5 year maintenance contract awarded recently by Petronas. This gives them recurring revenue to augment their recurring revenue from their tank farm operation.
Genting Malaysia is also slowly recovering after 3 black swans hit the company in December 2018. Lim Kok Thai, the CEO personally bought 27 million shares last month in the face of all the bad news. Perhaps the FOX/ Disney law suit may be resolved ? I noticed Genting posted full page ads in our local papers advertising for well paying theme park jobs. That is a vote of confidence in their growth potential. They certainly are not going to close their theme park.
All our shares are quality value+ growth investments. I do understand your concerns given all the uncertainties and volatility. Please contact me if you have questions on your investments I am always happy to clarify.
Short term volatility is the price we pay for outperformance and long term wealth building.
Invest well and grow your wealth,
Bill
Bill
Critter of the week is the Komodo Dragon, the world’s largest lizard. There are only about 5000 left in the wild so the Indonesian government is closing the Komodo national park for 1 year to restore the environment and improve the living conditions for the dragons.
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